blockchain: applications for registries? · 6/7/2016 · mehmet munur, partner, tsibouris &...
TRANSCRIPT
Julian Lamb, Director, Companies Registry, Jersey
Mehmet Munur, Partner, Tsibouris & Associates, LLC
Gary Walsh, Senior Manager, ERS
Blockchain: Applications for Registries?
Overview
1. Julian Lamb – Registry, innovation, and Blockchain
2. Gary Walsh – Blockchain and how it works
3. Mehmet Munur – Blockchain and legal challenges
Registry, Innovation, and Blockchain
What is Blockchain?
A Blockchain is a distributed, tamper-proof ledger of facts
Blockchain
NODE 1
My name is Mehmet Munur
#3456 + #681012 = #9121468
My name is Julian Lamb
#5678 + #1234 #681012
Immutability
My name is Gary Walsh
#1234
NODE 2 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 3 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 4 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
NODE 5 #9121468 Mehmet Munur
Julian Lamb Gary Walsh
Public –v- Private
• Public can be read and modified by anyone
• Private requires special permissions
• Unique challenges
Blockchain Use Cases
Smart Contracts
• Pre-written logic
• Stored and replicated on Blockchain
• Executed by network of computers
• Results in ledger update
Blockchain & Registry
• What is wrong with current model?
– Corruption / Trust
– Speed
– Centralisation
– Cost of operation
“The pointless Blockchain”
“If trust and robustness aren’t an issue, there’s nothing a blockchain can do that a regular database cannot.”
Dr. Gideon Greenspan, CEO MultiChain
“If your requirements are fulfilled by today’s relational databases, you’d be insane to use a blockchain.”
Dr. Gideon Greenspan, CEO MultiChain
Honduras
“In the past, Honduras has struggled with land
title fraud. The country’s database was
basically hacked. So bureaucrats could get in
there and they could get themselves beachfront
properties.” Factom President, Peter Kirby
Honduras
“When the Honduran police came to evict her in 2009, Mariana Izaguirre had lived in her lowly house for three decades. Unlike many of her neighbours, she even had an official title to the land on which it stood. But the records at the country’s Property Institute showed another person registered as its owner, too—and that person convinced a judge to sign an eviction order. By the time the legal confusion was finally sorted out, Ms Izaguirre’s house had been demolished.”
Source: economist.com
Registry Use Cases • Land titles
• Secured Transactions – Smart Contracts
• Estonia - Register of Wills
• Estonia – Health records
• Australia – Stock Exchange
Regulation
• Accountability / Responsibility
• Jurisdiction of the transaction
• Smart contracts – Contract law
• Consumer protection
Challenges - Technical
• Maturity
• Staff expertise
• Replacing existing infrastructure
Legal Challenges
• Importance of existing legal frameworks
• Identification challenges
• Contractual challenges
• Security challenges
• Privacy challenges
Bitcoin Lessons
Existing legal frameworks
Blockchain implementations must comply with existing legal frameworks—whatever they may be.
Identification Issues
• Identification and fraud issues
• Satisfying regulatory requirements
• Know Your Customer obligations (OFAC, SDN and related)
Contractual Issues
• Licenses (Open Source or Proprietary)
• Systemic Changes (forks)
• Terms of Use
• Privacy Policies
• Electronic Signatures
• Obtaining Consent
Security Issues
• Systemic security issues
• Transactional security issues
• Security issues relating to wallets or repositories
Privacy Issues
• Configuration issues
• Obligations relating to data breaches
Questions & Answers
Julian Lamb, Director, Companies Registry, Jersey
Mehmet Munur, Partner, Tsibouris & Associates, LLC
Gary Walsh, Senior Manager, ERS